Quote:
Originally Posted by Crowbob
Why bother being debt free? What are they going to do, evict millions, foreclose on 70% of the population? Reposses almost every car sold in the last three years? Serious question. The financial advisors say get out of debt to protect yourself. From whom? From what? What good will cash be?
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While we're on hypothetical events--what if the nation doesn't go Mad Max and instead, we see a period of weak growth and deflation. Then, debtors would be screwed.
I'm not saying cash is king. We'll, it is, but I don't see going into debt as a solution.
Use debt to finance quality investments ONLY. Hone your skill set. Act so you can succeed today, as well as tomorrow.
Lastly, don't buy into idealized notions of the collapse of the dollar. If you're assuming meltdown, who's to say the Chinese don't march over and begin collecting debt. Chinese mercenaries take possession of mortgages. They begin calling mortgages, and if you do not produce the balance in Euro/Yuan, you go to debtor's prison (manufacturing facility in the US). Why pay a Chinese man $2/day to work in a plant, when they can use you for the price of 3 meals and a cot. The US would become the new export leader of the world.